The Tax-Smart Way to Leave Money to Your Heirs and to Charity
Do you want to leave a legacy to your family and your favorite non-profit? It's a great idea that can benefit a lot of people -- even more so if you do it right in terms of taxes.
Taxes apply differently to various types of investment accounts. For, and some other types of accounts are tax deductible at the front end. They are wonderful accumulation vehicles because they allow your money to grow without being taxed. But distribution is another story. Money withdrawn from those accounts can be considered ordinary income, which incurs the highest tax.
